Abstract
The public procurement system enabled economic growth and delivery of infrastructure in South
Africa for many decades and has assisted the growth of the construction sector. Through public
procurement top infrastructure and successful projects in SA has been delivered with the
assistance of contractors and professionals in the construction sector managing to improve the
quality of life for many South Africans. The public procurement system forms an important part
of the construction industry in SA and forms a strategic tool of government to deliver services
and infrastructure to communities. Public sector procurement account for major spending in
construction and development of infrastructure, and is responsible for the growth of the sector in
SA. Construction sector is seen as a major economic contributor through employment and
delivery of infrastructure, and is a major source of the South African economic growth.
Despite successful delivery of infrastructure and projects through public procurement, the
system continues to be plagued by challenges that have resulted in South Africans questioning
its authenticity and has affected the construction industry in a negative way. The challenges
associated with the award of construction projects include corruption, bid rigging, price fixing
and collusion with procurement staff. The state of affairs prompted the researcher to conduct
the research to investigate challenges in the current procurement system in the public sector
with the aim to determine the best practices and international bench marks with the hope to
provide ways of improving procurement processes to improve the South African system to
ensure optimal value.
The study focuses on national departments procurement in Gauteng Province of SA. The study
commences with an introduction, which outlines the problem statement, research outcomes and
objectives, significance of the study and its limitations. The literature review comprised a review
of academic journals, textbooks and articles on similar studies to ascertain their findings and
assess contributions to the public procurement system in SA and around the world in relation to
the construction industry.
In addition, best practices and bench marks are reviewed and the procurement systems in
Malaysia and Australia are examined to draw a comparison with the South African system and
to identify procurement aspects which will optimise the performance of the system in SA. The
literature review reveals that lack of education and experience in procurement staff,
procurement management issues, non-compliance and lack of understanding of SCM, failure to...
M.Ing. (Engineering Management)